Page 54 - Six Sigma Yellow Belt

Value Streams - Exercise

Sequence of items, events and people that is required to produce an end result.

(it’s the process where you can identify areas of concern, waste and
improvement)

Payroll example of a value stream process for payroll, identify areas where

value can be added or wasted.

1. Employee hours worked are tracked and recorded in a timekeeping system.

2. Payroll clerk reviews the hours and calculates the pay for each employee.

3. The payroll clerk enters the pay information into the payroll system and generates paychecks or
direct deposits.

4. The payroll manager reviews the payroll to ensure accuracy and completeness.

5. The payroll manager approves the payroll and sends it to the finance department for processing.

6. The finance department records the payroll expense in the general ledger and prepares the

necessary tax filings.

7. The payroll records are filed and stored for future reference.